MDY vs TKR: Correlation
Measured on weekly returns over the past three years, SPDR S&P MidCap 400 ETF (MDY) and Timken Company (The) (TKR) carry a correlation of 0.72, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MDY and TKR?
On 3 years of weekly data the MDY/TKR correlation comes out at 0.72, strong. Little has changed lately, as the 1-year reading of 0.73 lands near the 3-year figure. The 5-year figure is 0.74, and annualized covariance runs at 323.0 %².
Within MDY's tracked universe of 359 assets, TKR comes in at #52 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months TKR outperformed by 41.5 percentage points (+18.3% for MDY against +59.8% for TKR). Note the risk asymmetry: TKR runs 1.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
MDY vs TKR: side by side
| MDY (SPDR S&P MidCap 400 ETF) | TKR (Timken Company (The)) | |
|---|---|---|
| 1-year return | +18.3% | +59.8% |
| 5-year return | +47.5% | +80.3% |
| Volatility (ann.) | 16.5% | 27.4% |
| Beta vs S&P 500 | 0.91 | 0.98 |
| Max drawdown (3Y) | -24.0% | -37.6% |
| Market cap | – | $8.6B |
| P/E (trailing) | – | 33.7 |
| Dividend yield | 1.02% | 1.12% |
| Expense ratio | 0.23% | – |
| Assets under management | $26.5B | – |
| Sector / category | ETF · US Small & Mid Cap | US Listed |
MDY, State Street Investment Management's Mid-Cap Blend fund, carries $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% trailing dividend yield.
Year-by-year returns
| Year | MDY | TKR |
|---|---|---|
| 2022 | -13.3% | +3.9% |
| 2023 | +16.1% | +15.4% |
| 2024 | +13.6% | -9.5% |
| 2025 | +7.2% | +20.0% |
| 2026 | +16.4% | +49.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 0.22% of MDY is TKR itself, so the fund partly moves with the stock by construction.
Are MDY and TKR good diversifiers for each other?
Only partially. A correlation of 0.72 means MDY and TKR share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between MDY and TKR?
The MDY/TKR correlation stands at 0.72 on a 3-year window (1 year: 0.73, 5 years: 0.74), computed from weekly returns as of 2026-08-27.
Is TKR a good diversifier for MDY?
Only partially. A correlation of 0.72 means MDY and TKR share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 mean?
On the −1 to +1 scale, 0.72 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mdy-vs-tkr.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mdy-vs-tkr/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: MDY correlations · TKR correlations
